Ford Motor Co. demonstrated the growing strength of the U.S. auto industry Tuesday by posting a third-quarter profit of $1.7 billion, a 69% jump over the same period a year ago and surpassing a previous record set in 1997.

The automaker  which unlike General Motors Co. and Chrysler Group avoided bankruptcy reorganization last year  benefitted from both cost cutting and top-line performance, gaining U.S. market share and selling vehicles for higher prices.

"Overall, we are doing better than we expected through the first nine months of the year," said Alan Mulally, Ford's chief executive, "and we expect to deliver solid profits in the fourth quarter and for the full year."

On Friday, Ford plans to use some of the cash it is generating to pay off the remaining $3.6 million it owes to the United Auto Workers union retiree healthcare trust, which will save it about $330 million in annual interest expenses. The automaker borrowed heavily to stay afloat during the recession and is working to pay back those loans.

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Well if they didn't take a bailout from the government then who did they borrow from? I must have missed this.

On Friday, Ford plans to use some of the cash it is generating to pay off the remaining $3.6 million it owes to the United Auto Workers union retiree healthcare trust, which will save it about $330 million in annual interest expenses. The automaker borrowed heavily to stay afloat during the recession and is working to pay back those loans.

Click to expand...

Well if they didn't take a bailout from the government then who did they borrow from? I must have missed this.

Click to expand...

Credit line of $20B granted to them by banks couple of months before banking meltdown started.

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